My employer is paying for the MBA program in which I am currently enrolled. They are paying this through payroll and as I understand it I will be liable for the taxes on all reimbursements above $5250 per year.

According to the information on the IRS web site, graduate level education reimbursement may be considered tax exempt if "it maintains or improves the skills required to perform the employee's current job."

Does this mean that if they send me a letter stating this I can write off all reimbursements?

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